Filed by Terra Networks, S.A.
                           Pursuant to Rule 425 under the Securities Act of 1933
                                                   Subject Company: Lycos, Inc.
                                                  Commission File No. 000-27830


     Telefonica will acquire from Bertelsmann all of the stock of media Ways
GmbH Internet -- Services. Telefonica and Bertelsmann are negotiating the final
documentation relating to the purchase. Media Ways is an indirect subsidiary of
Bertelsmann with one of the three largest IP networks in Germany, providing
telecommunications serivces to support Internet communications.

     The joint venture and announced arrangements and the $1 billion strategic
alliance entered into with Bertelsmann at the time of the acquisition agreement
between Terra and Lycos include the following details:

     Terra Lycos and Bertelsmann will negotiate a joint venture (25%, 75%) that
will sell books and media products through websites in Spain, Portugal and
Latin America under the BOL name. Bertelsmann has agreed that its sales in
these regions of Spanish and Portuguese language products in physical form
through websites will be made primarily through the joint venture.

     The Terra Lycos strategic alliance agreements provide Terra Lycos with
revenues of $1 billion over five years, with Bertelsmann being obligation to
pay $325 million to Terra Lycos for services during the first two years. In
years three to five, Bertelsmann will purchase up to to an additional $675
million in services. Taking into account the joint projects to be developed
between Telefonica and Bertelsmann, Telefonica has agreed to purchase any
portion of these services that Bertelsmann does not purchase.

     These materials contain certain forward-looking statements within the
meaning of the United States Private Securities Litigation Reform Act of 1995,
including, but not limited to information regarding strategic partnerships or
joint ventures. Forward- looking statements may also be identified by words
such as "believes", "expects", "anticipates", "projects", "intends", "should",
"seeks", "estimates", "future" or similar expressions.

     The forward-looking statements included in these materials are based on
current expectations, but actual results may differ materially from anticipated
future results due to various factors, many of which are beyond the control of
Terra Networks. Certain factors which could cause the actual individual and
combined results of Terra Lycos to differ materially from the expected results
include, among others, the risk that Terra Networks' and Lycos' businesses will
not be integrated successfully, costs related to the merger, failure of Terra
Networks or Lycos stockholders to approve the merger, inability to further
identify, develop and achieve success for new products, services and
technologies; increased competition and its effect on pricing, spending,
third-party relationships and revenues; inability to establish and maintain
relationships with commerce, advertising, marketing, technology and content
providers.

     For a discussion of these and other factors which may have a material
impact upon the individual and combined financial condition, results of
operation and liquidity of Terra Networks and Lycos, see (1) the Risk Factors
section of Terra Networks' F-1 filings with the SEC, including the Risk Factors
section of Terra Networks' F-1 filing that became effective in November 1999,
and (2) Lycos' filings with the SEC, including the section titled "Factors
Affecting the Company's Business, Operating Results and Financial Condition" of
the Management's Discussion and Analysis in its Form 10-K for the year ended
July 31, 1999 and the Risk Factors section of Lycos' S-3 filing that became
effective in March 2000.

     WE URGE INVESTORS TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER
RELEVANT DOCUMENTS THAT TERRA NETWORKS AND LYCOS HAVE FILED AND WILL FILE WITH
THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION.

     Investors will be able to obtain copies of the registration statements and
other documents from the SEC's Public Reference Room at 450 Fifth Street, N.W.,
Washington, D.C. 20549, Telephone (202) 942-8090, Fax (202) 628-9001, E-mail:
publicinfo@sec.gov. In addition, documents (excluding any exhibits) filed with
the SEC by Terra Networks will be available free of charge from Terra Networks.
READ THE PROXY STATEMENT/PROSPECTUSES CAREFULLY BEFORE MAKING A DECISION
REGARDING THE SHARE EXCHANGE.

     This communication shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of such
jurisdiction.